Krensky
First Post
It's not that simple, since publishing faces fairly high fixed costs (author, artists, etc.) and fairly low variable costs (each extra copy of a book is relatively cheap). And consignment makes stores willing to carry long-shots at all.
No it doesn't. What it does is make retailers stupid and lazy and makes it very, very hard for new and upcoming authors since retailers stop paying attention to the market. If they take a long shot, it's almost always because the publisher made them to get the latest Twilight or Dan Brown book.
The rule of thumb in mass market print runs is for every book you buy, you are really paying for two.
Eric Flint said:The reason I detest the consignment system has little do with the overall economics of the publishing industry. From the standpoint of publishing as a whole, it’s really no big deal. It simply means that they have to build into their price structure the fact that they have to print about twice as many books as they will actually sell. (What happens, in effect, is that when you pay eight dollars for a paperback in a bookstore, you’re actually buying two books—the one you’re taking home with you, and the extra copy of the same book that is going to get pulped to keep the whole circulation stream going.) Well, they did that a long time ago, and things have been chugging along well enough since.
No, the real problem with the consignment system from my standpoint is that, combined with the major changes in the distribution industry over the past two decades or so, it tends to make bookstores stupid. “Stupid” in the functioning sense that since they don’t take most of the risks of bad decisions they make but can pass them onto the publishers, they make a lot of bad mistakes. What’s probably more important, to me at least, is that they are also incredibly careless.
What I mean by that is this: Because of the sloppiness of the consignment system, major chain bookstores typically spend little time and effort (much less money) keeping careful track of all their titles. Instead, they concentrate almost entirely on the few big blockbuster titles—which is where they make most of their profits—and tend to ignore everything else.
But “everything else” means well over 99% of their titles. If any other retailer was as careless with most of their inventory as bookstores are, they’d go out of business pretty quickly. But bookstores don’t care that much, because most of the burden for their screw-ups winds up getting borne by the publishers thanks to the consignment system.
For all authors except the tiny number of top-selling ones, that means the system is a burden on them also. For those authors—and I’m one of them—it means that not only is their livelihood completely dependent on the market but, in this instance, it’s a market that has the brains of a moron.
Again, trust me on this one. I don’t know any successful author who hasn’t gritted his or her teeth when they see the way that bookstores so often are obviously paying no attention to sales. There will be one or even no copies of a book of theirs which is actually selling quite well, right next to multiple copies of a title by some other author that they know isn’t selling well at all.
What’s far worse is the plight of new and midlist authors, whose novels can have excellent sell-through but will never earn out their advances because the bookstores don’t order enough copies. They presumably would order more copies if they started paying attention to their whole inventory, and began noticing that some titles by new authors have a sell-through of 70% or 80%, which is well above average. But . . . they just don’t bother. If those lost sales were costing the bookstores money, they’d start paying attention to the problem. But they don’t, so they just shrug it off.